Baltic Growth Set to Slow as Export Capacity, Demand Are Capped

The Baltic economies of Estonia and Lithuania will probably slow from first-quarter peaks as capacity constraints limit exports, their main growth engine, and demand from abroad wanes, analysts said.

Having been hit hard by the global economic crisis, Estonia and Lithuania notched the quickest growth rates in at least three years as austerity helped improve competitiveness, which fuelled exports and manufacturing. Their pace was the fastest among European Union nations that have reported first-quarter data. Latvia also outpaced most developed nations.